Alberta Mortgage Pro

If you are getting a lower rate at renewal, keep your mortgage payments the same!! You're probably thinking WHY go to all the trouble of negotiating a lower rate, only to make the same monthly payment? But we have a good reason for that! While lower monthly payments could increase your cash flow, it most likely wouldn't be by much. However, keeping the same monthly payments at your renewed lower interest rate means reducing the overall amortization and paying your mortgage... off sooner - giving you maximum bang for your money. For added acceleration, make sure you are paying accelerated bi-weekly payments to shave a few years off the repayment of your mortgage!

How's this for irony: a Bank of Canada study found that using a mortgage broker could actually result in getting a lower mortgage rate than the big banks! This is because mortgage professionals have access to multiple lenders therefore having access to multiple competitive quotes. If you are still feeling a sense of loyalty to your bank, consider this: the same Bank of Canada study discovered that existing bank customers may not get as good of a deal than if they were to approach a different bank as a new customer. Translation: if you're looking for the better deal, consider switching to another lender or mortgage professional.

A bank is just like any business - they are in business to make money and the Canadian big five banks make billions of it! Think of the bank's posted rate as the number the banks want to sell you on in order to make the greatest amount of profit on the interest you pay. This number has significant room to negotiate down from so don't be afraid to negotiate. Working with a mortgage professional gives you buying power when negotiating as a successful mortgage broker that has significant volumes of business could very well secure better rates on your behalf. Do you want to negotiate one mortgage or have a mortgage professional who is negotiating hundreds a month do so? Chances are volumes tend to secure better rates!